Ch 7 BK - Any Hope with Countrywide?

[buzzpat]

Hi All

THis is a great site and the information is very timely. Here is our situation and one with which any advice is extremely appreciated.

Due to a job loss, we were forced to declare chapter seven bankruptcy which has been discharged recently. We live in Southern California and the housing market has plunged dramattically in our area. For example, our home has depreciated 37% in the last two years. We remained current with our mortgage until we filed for BK. At the time, I spoke with Countrywide and was told that a) they wouldn't pay attention to our situation until we defaulted on some payments, and, b) they couldn't work with us until our bankruptcy was complete. So, we included our home in our claim.

Now, our bankruptcy is complete and I have sent letters to Countrywide Home Loans's Home Retention office asking if there is a possibility to work out a resolution. Our financial situation has improved significantly and I am back to work although I'm making less than I was before (and upon which the original mortgage was based).

I can't make the original loan payments but can, with some forgiveness for defaulted payments, resume payments approaching about 2/3 of what our original obligations were.

Is there any precedent out there for a situation similar to ours? What would be our best approach?

Thanks so much for your terrific site and anything you can recommend or advise.

buzzpat

[Cat Damiano]

Hi buzzpat,


Welcome to the forum and thank you for joining..............

What is the interest rate?
Is it fixed or adjustable?
If adjustable when is it adjusting?
One loan or two?

When you put together your household income versus your household expenses are you able to show a surplus of around $100-$250 left at the end of the month?

When you say:
I can't make the original loan payments but can, with some forgiveness for defaulted payments, resume payments approaching about 2/3 of what our original obligations were.

If you meant principle reduction, the lenders are not doing that at this time.........whether they will in the future is anyones guess...........

[buzzpat]

Hi Cat

Thank you for taking the time to help.

Our interest rate is adjustable and offered the negative amortization option which, unfortunately, we were forced to use for quite a few payments. Currently, the rate is 6.5% but it adjusts based on the 12-month average of the LIBOR.

Countrywide Home Loans is our first of two mortgages. We had a second which was also discharged under the BK. The original mortgage we took out with CW is now much higher than the current value of the home. We attempted to sell the home for almost a year, tried a short sell, and tried to lease it without success. The SoCal market, at least where we live, has plummeted dramatically.

We can show a surplus at the end of the month but $100-250 is probably about right.

Thanks so much for any advice.

[Cat Damiano]

To get started you would need to put together a hardship letter........there are examples in the Homeowner Tool Box to the left of the forum...........
Call the Home Retention Team to see what options are available from the investor on the loan............Countrywide's investors have been modifying option arms.........

Please keep us posted on your progress...........

Home Retention Dept.
1-800-669-6650

[buzzpat]

Thanks Cat

I sent hardship letters out last week to the Home Retention Dept and to Customer Service. I called the Home Retention folks, was passed to "my bankruptcy technician" and left a voicemail for him. I'll try them again on Monday. Ironically, we live in the same town that Countrywide Home Loans has their headquarters.

Thanks for the help and I'll be sure to keep you updated on our progress.

Buzz

[buzzpat]

An update...

I emailed the Office of the President explaining our situation and our desire to remain in the home. A customer care rep called the very next day and told us they would work with us. I sent in my current pay statements, bank statements and our monthly expenses. Again, the rep called back immediately and said they would work a loan modification for us.

Don't want to get our hopes up but, so far, Countrywide Home Loans has been very accommodating and a pleasure to work with.

I'll let you know how it works out.

B

[Cat Damiano]

B,

Thanks for the update............it sounds good!!


Keep us updated on the progress..........

[buzzpat]

The latest...

I received a letter from the customer care department asking me to call my negotiation officer. I did and they are looking at restructuring our loan to fit into our budget (that I provided them last month). It sounds promising. I asked them how the recent bailout legislation would affect the process and they weren't sure.

For other folks in the same predicament, I highly recommend e-mailing Countrywide Home Loans senior leadership that Cat has provided. That's what got the ball rolling for us almost overnight.

[t2ony]

Congrats on your bk discharge! I was wondering if you can give me some input as to how you got your 2nd morgage discharged? I've read many forums but everyone said it's not possible. I'm also planning to do loan modification with Countrywide Home Loans after discharge. Did you reaffirm and remain current with your morgage throughout your filing?